RBI Prepares to Roll Out Polymer Currency Notes in India

The Reserve Bank of India has announced plans to introduce polymer currency notes by FY28. The central bank is currently conducting trials, which will determine if polymer notes are viable for wider circulation.

RBI Governor Sanjay Malhotra has confirmed that the government has approved trials of one billion Rs 10 and one billion Rs 20 polymer notes.

The introduction of polymer notes could create a new market for India's plastics industry. Domestic manufacturers may supply materials and technologies required for banknote production, including banknote-grade polymers, specialised films, precision processing, security features, and recycling.

Anil Reddy Vennam, Senior Vice-President of the All India Plastics Manufacturers' Association (AIPMA), believes that this could create a new high-value segment for the polymer industry. He notes that lower-denomination notes undergo significant wear and tear and that polymer banknotes have a longer circulation life than conventional paper notes.

Polymer banknotes are already used in several countries, including Australia, Canada, New Zealand, Singapore, and the UK. They offer greater resistance to water, dirt, and wear while allowing advanced security features such as transparent windows.